GST and Income tax on fees

[luckydog71]

Grendleaxe, you bring up a very interesting thought. How many SPs collect the GST and remit this to the federal government?

How many SPs pay federal and provincial income tax on their earnings?

If you do not I would be very interested to understand why not?

I posted this in a different thread and you would think I had farted in church. Everyone could smell it but no one wanted to say anything.

So I ask again:

Pooners are you willing to pay GST on the services you receive?

SPs do you pay taxes on the money you make?

 

[threepeat]

I'm biting my tongue

But I'll give you the politically correct answer from a pooner's perspective.

If you have a session at an MP, the money given to the girl is considered a tip. If we accept that premise, then a customer shouldn't pay GST on this tip any more than they would pay GST on a tip given to their hairdresser or their waiter.

Just my $0.02 (GST not included).

 

[trackstar]

But for the sp, the "tips" they receive is income and therefore legally they have to declare this income and pay income tax. You naughty law breakers... just turns us on more, doesn't it?

 

[luckydog71]

I knew the answer; …… I just had to ask the question.

So lets do the math:

3000 SP’s in Canada. (I am sure that is on the low side)
15 clients a month
150 per client
12 months a year
That is 81,000,000 revenue

7% GST = 5,670,000
30% Income tax = 24,300,000
25 % Provincial tax = 6,075,000

Total taxes NOT COLLECTED 36,045,000

My numbers maybe off a bit, I think I am close. And the point is, if everyone does not pay their fair share then the ones who do pay end up paying more than their fair share.

If you are a liberal you should be saying, How many hospital beds could stay open if we had another 36,000,000?

If you are a conservative you should be saying, How much lower would my taxes be if we had another 36,000,000?

If you are apathetic you are saying, Who cares it is only 36,000,000 out of 156,000,000,000?

Things that make you say Hmmmmmmmmmmmmmmm.

 

[primetime]

Good Point luckydog71, 36million in uncollected taxes.

Lets also add on another 14 million, for benefits received.

the quarterly GST refunds
free MSP
free prescriptions once the limit is reached
the ability to collect money from other sources

 

[InVogue]

Things that should make you say hmmmm…

All very interesting luckydog71 but, like any business, additional expenses that are incurred are subsequently passed on to the customers base. According to your calculations that is 540,000 gentlemen/lady pooners that would have to absorb the $81,000,000 which would put the cost up an additional $150 per hour.

Things that make you say hmmmm…

Why someone registered out of Washington State would be so concerned about the Canadian hospital bed situation and taxes.

Stay happy...Anna

 

[luckydog71]

You ask a great question. Why would a guy from WA be concerned? 3 reasons:

- The issue is universal. The same issue exists in the US.
- I find it disingenuous that some of the people who argue for more social benefits also avoid paying their share of the tax burden to fund those social benefits.
- I paid into CPP long enough to qualify for benefits, providing the Canadian government has enough money to pay me when I am old enough.